8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

April 26, 2022

Date of Report (Date of earliest event reported)

TRUSTMARK CORPORATION

(Exact name of registrant as specified in its charter)

Mississippi	000-03683	64-0471500
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

248 East Capitol Street, Jackson, Mississippi	39201
(Address of principal executive offices)	(Zip Code)
Registrant’s telephone number, including area code:	(601) 208-5111

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered Pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, no par value	TRMK	Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). 

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.  Results of Operations and Financial Condition.

On April 26, 2022, Trustmark Corporation issued a press release announcing its financial results for the period ended March 31, 2022.  A copy of this press release and the accompanying financial statements and slide presentation are attached hereto as Exhibits 99.1 and 99.2 to this report and incorporated herein by reference.

Item 9.01.  Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number	Description of Exhibits
99.1	Press release announcing financial results for the period ended March 31, 2022
99.2	Investor slide presentation for the period ended March 31, 2022
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

TRUSTMARK CORPORATION

BY:	/s/ Thomas C. Owens
	Thomas C. Owens
	Treasurer and Principal Financial Officer
DATE:	April 26, 2022

EX-99.1

Exhibit 99.1

News Release

Trustmark Corporation Announces First Quarter 2022 Financial Results

Loan and Deposit Growth Continues, Credit Quality Remains Strong,

Insurance and Wealth Management Revenue Expands

JACKSON, Miss. – April 26, 2022 – Trustmark Corporation (NASDAQGS:TRMK) reported net income of $29.2 million in the first quarter of 2022, representing diluted earnings per share of $0.47.  Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable June 15, 2022, to shareholders of record on June 1, 2022.

First Quarter Highlights

• Total revenue expanded 2.9% from the prior quarter to $153.5 million

• Net interest income (FTE) grew 1.1% from the prior quarter to $102.3 million, resulting in a 5 basis point expansion in the net interest margin to 2.58%

• Noninterest income increased 6.6% from the prior quarter to $54.1 million, representing 35.3% of total revenue

• Credit quality remained strong; provision for credit losses was a negative $2.0 million in first quarter

Duane A. Dewey, President and CEO, stated, “Our first quarter financial performance reflects solid loan growth and expansion in both net interest income and noninterest income. Our balance sheet is well-positioned for additional increases in interest rates and credit quality remains a hallmark of the organization.  We continue to focus on efficiency enhancements throughout the organization, including rationalization of the branch network as well as investments in technology to better serve customers.  Trustmark remains well-positioned to serve and expand our customer base and create long-term value for our shareholders.”

Balance Sheet Management

• Loans held for investment (HFI) increased 1.5% from the prior quarter and 4.1% year-over-year

• Deposits grew 0.2% linked-quarter and 5.1% year-over-year

• Maintained strong capital position with CET1 ratio of 11.23% and total risk-based capital ratio of 13.53%

Loans HFI totaled $10.4 billion at March 31, 2022, reflecting an increase of $149.3 million, or 1.5%, linked-quarter and $413.4 million, or 4.1%, year-over-year.  The linked-quarter growth reflects increases in 1-4 family mortgage loans, commercial and industrial loans, and loans to municipalities. Growth in these areas was partially offset by reductions in other loans, construction, land development and other land loans, and other real estate secured loans.  Trustmark’s loan portfolio remains well-diversified by loan type and geography.

Deposits totaled $15.1 billion at March 31, 2022, up $26.1 million, or 0.2%, from the prior quarter and $729.9 million, or 5.1%, year-over-year.  Trustmark continues to maintain a strong liquidity position as loans HFI represented 68.8% of total deposits at March 31, 2022.  Noninterest-bearing deposits represented 31.4% of total deposits at the end of the first quarter, compared to 31.6% in the prior quarter.  Interest-bearing deposit costs totaled 0.11% for the first quarter, a decrease of 2 basis points from the prior quarter.  The total cost of interest-bearing liabilities was 0.16% for the first quarter of 2022, a decrease of 3 basis points from the prior quarter.  

During the first quarter, Trustmark repurchased $9.1 million, or approximately 279 thousand of its common shares, in open market transactions.  At March 31, 2022, Trustmark had $90.9 million in remaining authority under its existing stock repurchase program, which expires December 31, 2022.  The repurchase program, which is subject to market conditions and management discretion, will continue to be implemented through open market repurchases or privately negotiated transactions.  At March 31, 2022, Trustmark’s tangible equity to tangible assets ratio was 7.29%, while its total risk-based capital ratio was 13.53%.  Tangible book value per share was $20.22 at March 31, 2022, down 7.8% from the prior quarter reflecting a decline in other comprehensive income due to valuation adjustments on securities available for sale resulting from the increase in market interest rates during the first quarter.  

Credit Quality

• Allowance for credit losses (ACL) represented 484.01% of nonaccrual loans, excluding individually evaluated loans, at March 31, 2022

• Recoveries exceeded charge-offs in the first quarter

• Other real estate totaled $3.2 million at March 31, 2022

Nonaccrual loans totaled $64.4 million at March 31, 2022, up $1.7 million from the prior quarter and $885 thousand year-over-year.  Other real estate totaled $3.2 million, reflecting a $1.4 million decrease from the prior quarter and a decline of $7.5 million year-over-year. Collectively, nonperforming assets totaled $67.6 million at March 31, 2022, reflecting a linked-quarter increase of $331 thousand and a year-over-year decrease of $6.6 million.

The provision for credit losses for loans HFI was a negative $860 thousand in the first quarter while the provision for credit losses for off-balance sheet credit exposures was a negative $1.1 million.  Collectively, the provision for credit losses totaled a negative $2.0 million in the first quarter and was attributable to an increase in reserves due to individually analyzed loans and loan growth which were more than offset by improvements in the macroeconomic forecast and credit quality. 

Allocation of Trustmark’s $98.7 million allowance for credit losses on loans HFI represented 0.95% of commercial loans and 0.96% of consumer and home mortgage loans, resulting in an allowance to total loans HFI of 0.95% at March 31, 2022.  Management believes the level of the ACL is commensurate with the credit losses currently expected in the loan portfolio. 

Revenue Generation

• Pre-provision net revenue totaled $31.9 million, an increase of 7.8% linked-quarter; please refer to the Consolidated Financial Information, Footnote 6 – Non-GAAP Financial Measures

• Net interest income (FTE) excluding Paycheck Protection Program (PPP) interest and fees totaled $102.2 million, up 1.3% linked-quarter

• Noninterest income increased 6.6% linked-quarter to total $54.1 million, which represented 35.3% of total revenue

Revenue in the first quarter totaled $153.5 million, up 2.9% from the prior quarter and down 5.8% from the same quarter in the prior year.  The linked-quarter increase reflected higher net interest income as well as increased noninterest income. The decline in revenue year-over-year was attributable principally to a reduction in interest and fees on PPP loans as well as the decline in mortgage banking revenues from historically high levels.    

Net interest income (FTE) in the first quarter totaled $102.3 million, resulting in a net interest margin of 2.58%, up 5 basis points from the prior quarter.  The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.88% the first quarter, an increase of 6 basis points when compared to the prior quarter.  The expansion of the net interest margin excluding PPP loans and the Federal Reserve Bank balance was due to increases in the yields on the loans held for investment and held for sale portfolio and the securities portfolio as well as lower costs of interest-bearing liabilities.  

Noninterest income in the first quarter totaled $54.1 million, an increase of $3.3 million from the prior quarter and a decrease of $6.5 million year-over-year.  The linked-quarter increases in insurance, wealth management and other, net revenue, which includes a gain on the sale of a former branch facility, were offset in part by a decline in mortgage banking revenue.  Mortgage loan production in the first quarter totaled $544.3 million, down 7.9% from the prior quarter and 29.0% year-over-year.  Mortgage banking revenue totaled $9.9 million in the first quarter, a decrease of $1.7 million from the prior quarter and $10.9 million year-over-year.  The linked-quarter and year-over-year declines were principally attributable to reduced volumes and spreads, which collectively resulted in lower net gains on sales of mortgage loans in the secondary market.

Insurance revenue totaled $14.1 million in the first quarter, up 20.3%, or $2.4 million, from the fourth quarter of 2021 and 13.2%, or $1.6 million, year-over-year.  The linked-quarter and year-over-year increase primarily reflected growth in commercial property and casualty commissions.  Wealth management revenue in the first quarter totaled $9.1 million, an increase of $297 thousand, or 3.4%, from the prior quarter and $638 thousand, or 7.6%, year-over-year.  The linked-quarter growth reflected higher trust management revenue while growth year-over-year reflects increased trust management and brokerage revenue.

Noninterest Expense

• Noninterest expense totaled $121.5 million in first quarter, up 1.7% linked-quarter and unchanged year-over year

• Adjusted noninterest expense, which excludes ORE expense, amortization of intangibles, and charitable contributions resulting in state tax credits totaled $120.6 million in the first quarter, up 2.1% from the prior quarter and 0.3% year-over-year.  Please refer to the Consolidated Financial Information, Footnote 6 – Non-GAAP Financial Measures

Noninterest expense in the first quarter was $121.5 million, up $2.1 million, or 1.7%, from the prior quarter.  Salaries and employee benefits increased $1.3 million linked-quarter principally due to payroll taxes. Services and fees increased $1.5 million linked-quarter due to continued investments in technology and higher professional fees while net occupancy-premises expense grew $263 thousand linked-quarter.  Equipment expense and other expense collectively declined $1.1 million linked-quarter.    

FIT2GROW

• Comprehensive program of Focus, Innovation and Transformation to enhance Trustmark’s growth and profitability

• Market optimization initiatives to accelerate

“We have accelerated our efforts to optimize our branch network, reflecting changing customer preferences and the continued migration to mobile and digital banking channels. We have identified 11 branch offices across the franchise to be closed during 2022, with estimated annualized expense savings of $2.0 million in 2023.  Many of these offices are near other existing Trustmark locations.  We also anticipate additional opportunities to realign our organizational structure to serve customers more effectively.  These initiatives are components of FIT2GROW, a comprehensive program of Focus, Innovation and Transformation designed to enhance Trustmark’s ability to grow and serve customers and build long-term value for our shareholders.  More information on these important initiatives will be provided in coming quarters,” said Dewey.

Additional Information

As previously announced, Trustmark will conduct a conference call with analysts on Wednesday, April 27, 2022, at 8:30 a.m. Central Time to discuss the Corporation’s financial results.  Interested parties may listen to the conference call by dialing (877) 317-3051 or by clicking on the link provided under the Investor Relations section of our website at www.trustmark.com.  A replay of the conference call will also be available through Wednesday, May 11, 2022, in archived format at the same web address or by calling (877) 344-7529, passcode 7381408.

Trustmark is a financial services company providing banking and financial solutions through 179 offices in Alabama, Florida, Mississippi, Tennessee and Texas.

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward-looking statements. You should be aware that the occurrence of the events described under the caption Item 1A. Risk Factors in this report could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (COVID-19) pandemic, and also by the effectiveness of varying governmental responses in ameliorating the impact of the pandemic on our customers and the economies where they operate.

Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, our ability to manage the impact of the COVID-19 pandemic on our markets, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve System (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, levels of and volatility in crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits,

technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber-attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the Securities and Exchange Commission (SEC).

Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise.

Trustmark Investor Contacts:	Trustmark Media Contact:
Thomas C. Owens	Melanie A. Morgan
Treasurer and	Senior Vice President
Principal Financial Officer	601-208-2979
601-208-7853

F. Joseph Rein, Jr.

Senior Vice President

601-208-6898

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	March 31, 2022
	($ in thousands)
	(unaudited)

										Linked Quarter						Year over Year
QUARTERLY AVERAGE BALANCES	3/31/2022			12/31/2021			3/31/2021			$ Change			% Change			$ Change			% Change
Securities AFS-taxable	$	3,245,502		$	3,156,740		$	2,098,089		$	88,762			2.8	%	$	1,147,413			54.7	%
Securities AFS-nontaxable		5,127			5,143			5,190			(16	)		-0.3	%		(63	)		-1.2	%
Securities HTM-taxable		410,851			364,038			489,260			46,813			12.9	%		(78,409	)		-16.0	%
Securities HTM-nontaxable		7,327			7,618			24,070			(291	)		-3.8	%		(16,743	)		-69.6	%
Total securities		3,668,807			3,533,539			2,616,609			135,268			3.8	%		1,052,198			40.2	%
Paycheck protection program loans (PPP)		29,009			42,749			598,139			(13,740	)		-32.1	%		(569,130	)		-95.2	%
Loans (includes loans held for sale)		10,550,712			10,487,679			10,316,319			63,033			0.6	%		234,393			2.3	%
Fed funds sold and reverse repurchases		56			58			136			(2	)		-3.4	%		(80	)		-58.8	%
Other earning assets		1,811,713			1,839,498			1,667,906			(27,785	)		-1.5	%		143,807			8.6	%
Total earning assets		16,060,297			15,903,523			15,199,109			156,774			1.0	%		861,188			5.7	%
Allowance for credit losses (ACL), loans held    for investment (LHFI)		(99,390	)		(104,148	)		(119,557	)		4,758			4.6	%		20,167			16.9	%
Other assets		1,550,848			1,570,501			1,601,250			(19,653	)		-1.3	%		(50,402	)		-3.1	%
Total assets	$	17,511,755		$	17,369,876		$	16,680,802		$	141,879			0.8	%	$	830,953			5.0	%
Interest-bearing demand deposits	$	4,429,056		$	4,353,599		$	3,743,651		$	75,457			1.7	%	$	685,405			18.3	%
Savings deposits		4,791,104			4,585,624			4,659,037			205,480			4.5	%		132,067			2.8	%
Time deposits		1,193,435			1,220,083			1,371,830			(26,648	)		-2.2	%		(178,395	)		-13.0	%
Total interest-bearing deposits		10,413,595			10,159,306			9,774,518			254,289			2.5	%		639,077			6.5	%
Fed funds purchased and repurchases		212,006			201,856			166,909			10,150			5.0	%		45,097			27.0	%
Other borrowings		91,090			94,328			166,926			(3,238	)		-3.4	%		(75,836	)		-45.4	%
Subordinated notes		123,061			123,007			122,875			54			0.0	%		186			0.2	%
Junior subordinated debt securities		61,856			61,856			61,856			—			0.0	%		—			0.0	%
Total interest-bearing liabilities		10,901,608			10,640,353			10,293,084			261,255			2.5	%		608,524			5.9	%
Noninterest-bearing deposits		4,601,108			4,679,951			4,363,559			(78,843	)		-1.7	%		237,549			5.4	%
Other liabilities		295,287			291,449			264,808			3,838			1.3	%		30,479			11.5	%
Total liabilities		15,798,003			15,611,753			14,921,451			186,250			1.2	%		876,552			5.9	%
Shareholders' equity		1,713,752			1,758,123			1,759,351			(44,371	)		-2.5	%		(45,599	)		-2.6	%
Total liabilities and equity	$	17,511,755		$	17,369,876		$	16,680,802		$	141,879			0.8	%	$	830,953			5.0	%
n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	March 31, 2022
	($ in thousands)
	(unaudited)

										Linked Quarter						Year over Year
PERIOD END BALANCES	3/31/2022			12/31/2021			3/31/2021			$ Change			% Change			$ Change			% Change
Cash and due from banks	$	1,917,564		$	2,266,829		$	1,774,541		$	(349,265	)		-15.4	%	$	143,023			8.1	%
Securities available for sale		3,018,246			3,238,877			2,337,676			(220,631	)		-6.8	%		680,570			29.1	%
Securities held to maturity		607,598			342,537			493,738			265,061			77.4	%		113,860			23.1	%
PPP loans		18,579			33,336			679,725			(14,757	)		-44.3	%		(661,146	)		-97.3	%
Loans held for sale (LHFS)		222,538			275,706			412,999			(53,168	)		-19.3	%		(190,461	)		-46.1	%
Loans held for investment (LHFI)		10,397,129			10,247,829			9,983,704			149,300			1.5	%		413,425			4.1	%
ACL LHFI		(98,734	)		(99,457	)		(109,191	)		723			0.7	%		10,457			9.6	%
Net LHFI		10,298,395			10,148,372			9,874,513			150,023			1.5	%		423,882			4.3	%
Premises and equipment, net		207,301			205,644			199,098			1,657			0.8	%		8,203			4.1	%
Mortgage servicing rights		111,050			87,687			83,035			23,363			26.6	%		28,015			33.7	%
Goodwill		384,237			384,237			384,237			—			0.0	%		—			0.0	%
Identifiable intangible assets		4,591			5,074			6,724			(483	)		-9.5	%		(2,133	)		-31.7	%
Other real estate		3,187			4,557			10,651			(1,370	)		-30.1	%		(7,464	)		-70.1	%
Operating lease right-of-use assets		34,048			34,603			33,704			(555	)		-1.6	%		344			1.0	%
Other assets		614,217			568,177			587,672			46,040			8.1	%		26,545			4.5	%
Total assets	$	17,441,551		$	17,595,636		$	16,878,313		$	(154,085	)		-0.9	%	$	563,238			3.3	%
Deposits:
Noninterest-bearing	$	4,739,102		$	4,771,065		$	4,705,991		$	(31,963	)		-0.7	%	$	33,111			0.7	%
Interest-bearing		10,374,190			10,316,095			9,677,449			58,095			0.6	%		696,741			7.2	%
Total deposits		15,113,292			15,087,160			14,383,440			26,132			0.2	%		729,852			5.1	%
Fed funds purchased and repurchases		170,499			238,577			160,991			(68,078	)		-28.5	%		9,508			5.9	%
Other borrowings		84,644			91,025			145,994			(6,381	)		-7.0	%		(61,350	)		-42.0	%
Subordinated notes		123,097			123,042			122,877			55			0.0	%		220			0.2	%
Junior subordinated debt securities		61,856			61,856			61,856			—			0.0	%		—			0.0	%
ACL on off-balance sheet credit exposures		34,517			35,623			29,205			(1,106	)		-3.1	%		5,312			18.2	%
Operating lease liabilities		35,912			36,468			35,389			(556	)		-1.5	%		523			1.5	%
Other liabilities		186,352			180,574			178,856			5,778			3.2	%		7,496			4.2	%
Total liabilities		15,810,169			15,854,325			15,118,608			(44,156	)		-0.3	%		691,561			4.6	%
Common stock		12,806			12,845			13,209			(39	)		-0.3	%		(403	)		-3.1	%
Capital surplus		167,094			175,913			229,892			(8,819	)		-5.0	%		(62,798	)		-27.3	%
Retained earnings		1,600,138			1,585,113			1,533,110			15,025			0.9	%		67,028			4.4	%
Accumulated other comprehensive income (loss),    net of tax		(148,656	)		(32,560	)		(16,506	)		(116,096	)	n/m				(132,150	)	n/m
Total shareholders' equity		1,631,382			1,741,311			1,759,705			(109,929	)		-6.3	%		(128,323	)		-7.3	%
Total liabilities and equity	$	17,441,551		$	17,595,636		$	16,878,313		$	(154,085	)		-0.9	%	$	563,238			3.3	%
n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	March 31, 2022
	($ in thousands except per share data)
	(unaudited)

	Quarter Ended									Linked Quarter						Year over Year
INCOME STATEMENTS	3/31/2022			12/31/2021			3/31/2021			$ Change			% Change			$ Change			% Change
Interest and fees on LHFS & LHFI-FTE	$	93,252		$	94,137		$	93,394		$	(885	)		-0.9	%	$	(142	)		-0.2	%
Interest and fees on PPP loans		168			397			9,241			(229	)		-57.7	%		(9,073	)		-98.2	%
Interest on securities-taxable		12,357			10,796			8,938			1,561			14.5	%		3,419			38.3	%
Interest on securities-tax exempt-FTE		122			123			290			(1	)		-0.8	%		(168	)		-57.9	%
Other interest income		817			826			503			(9	)		-1.1	%		314			62.4	%
Total interest income-FTE		106,716			106,279			112,366			437			0.4	%		(5,650	)		-5.0	%
Interest on deposits		2,760			3,401			5,223			(641	)		-18.8	%		(2,463	)		-47.2	%
Interest on fed funds purchased and repurchases		70			66			56			4			6.1	%		14			25.0	%
Other interest expense		1,539			1,580			1,857			(41	)		-2.6	%		(318	)		-17.1	%
Total interest expense		4,369			5,047			7,136			(678	)		-13.4	%		(2,767	)		-38.8	%
Net interest income-FTE		102,347			101,232			105,230			1,115			1.1	%		(2,883	)		-2.7	%
Provision for credit losses, LHFI		(860	)		(4,515	)		(10,501	)		3,655			81.0	%		9,641			91.8	%
Provision for credit losses, off-balance sheet    credit exposures		(1,106	)		2,939			(9,367	)		(4,045	)	n/m				8,261			88.2	%
Net interest income after provision-FTE		104,313			102,808			125,098			1,505			1.5	%		(20,785	)		-16.6	%
Service charges on deposit accounts		9,451			9,366			7,356			85			0.9	%		2,095			28.5	%
Bank card and other fees		8,442			8,340			9,472			102			1.2	%		(1,030	)		-10.9	%
Mortgage banking, net		9,873			11,609			20,804			(1,736	)		-15.0	%		(10,931	)		-52.5	%
Insurance commissions		14,089			11,716			12,445			2,373			20.3	%		1,644			13.2	%
Wealth management		9,054			8,757			8,416			297			3.4	%		638			7.6	%
Other, net		3,206			979			2,090			2,227		n/m				1,116			53.4	%
Total noninterest income		54,115			50,767			60,583			3,348			6.6	%		(6,468	)		-10.7	%
Salaries and employee benefits		69,585			68,258			71,162			1,327			1.9	%		(1,577	)		-2.2	%
Services and fees		24,453			22,904			22,484			1,549			6.8	%		1,969			8.8	%
Net occupancy-premises		7,079			6,816			6,795			263			3.9	%		284			4.2	%
Equipment expense		6,061			6,585			6,244			(524	)		-8.0	%		(183	)		-2.9	%
Other expense		14,341			14,906			14,863			(565	)		-3.8	%		(522	)		-3.5	%
Total noninterest expense		121,519			119,469			121,548			2,050			1.7	%		(29	)		0.0	%
Income before income taxes and tax eq adj		36,909			34,106			64,133			2,803			8.2	%		(27,224	)		-42.4	%
Tax equivalent adjustment		3,003			2,906			2,894			97			3.3	%		109			3.8	%
Income before income taxes		33,906			31,200			61,239			2,706			8.7	%		(27,333	)		-44.6	%
Income taxes		4,695			4,978			9,277			(283	)		-5.7	%		(4,582	)		-49.4	%
Net income	$	29,211		$	26,222		$	51,962		$	2,989			11.4	%	$	(22,751	)		-43.8	%
Per share data
Earnings per share - basic	$	0.47		$	0.42		$	0.82		$	0.05			11.9	%	$	(0.35	)		-42.7	%
Earnings per share - diluted	$	0.47		$	0.42		$	0.82		$	0.05			11.9	%	$	(0.35	)		-42.7	%
Dividends per share	$	0.23		$	0.23		$	0.23			—			0.0	%		—			0.0	%
Weighted average shares outstanding
Basic		61,514,395			62,037,884			63,395,911
Diluted		61,709,797			62,264,983			63,562,503
Period end shares outstanding		61,463,392			61,648,679			63,394,522
n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	March 31, 2022
	($ in thousands)
	(unaudited)

	Quarter Ended									Linked Quarter						Year over Year
NONPERFORMING ASSETS (1)	3/31/2022			12/31/2021			3/31/2021			$ Change			% Change			$ Change			% Change
Nonaccrual LHFI
Alabama	$	7,506		$	8,182		$	9,161		$	(676	)		-8.3	%	$	(1,655	)		-18.1	%
Florida		310			313			607			(3	)		-1.0	%		(297	)		-48.9	%
Mississippi (2)		21,318			21,636			35,534			(318	)		-1.5	%		(14,216	)		-40.0	%
Tennessee (3)		9,266			10,501			12,451			(1,235	)		-11.8	%		(3,185	)		-25.6	%
Texas		25,999			22,066			5,761			3,933			17.8	%		20,238		n/m
Total nonaccrual LHFI		64,399			62,698			63,514			1,701			2.7	%		885			1.4	%
Other real estate
Alabama		—			—			3,085			—		n/m				(3,085	)		-100.0	%
Mississippi (2)		3,187			4,557			7,566			(1,370	)		-30.1	%		(4,379	)		-57.9	%
Tennessee (3)		—			—			—			—		n/m				—		n/m
Total other real estate		3,187			4,557			10,651			(1,370	)		-30.1	%		(7,464	)		-70.1	%
Total nonperforming assets	$	67,586		$	67,255		$	74,165		$	331			0.5	%	$	(6,579	)		-8.9	%
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	1,503		$	2,114		$	2,593		$	(611	)		-28.9	%	$	(1,090	)		-42.0	%
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	62,078		$	69,894		$	109,566		$	(7,816	)		-11.2	%	$	(47,488	)		-43.3	%
	Quarter Ended									Linked Quarter						Year over Year
ACL LHFI(1)	3/31/2022			12/31/2021			3/31/2021			$ Change			% Change			$ Change			% Change
Beginning Balance	$	99,457		$	104,073		$	117,306		$	(4,616	)		-4.4	%	$	(17,849	)		-15.2	%
Provision for credit losses, LHFI		(860	)		(4,515	)		(10,501	)		3,655			81.0	%		9,641			91.8	%
Charge-offs		(2,242	)		(2,616	)		(1,245	)		374			14.3	%		(997	)		-80.1	%
Recoveries		2,379			2,515			3,631			(136	)		-5.4	%		(1,252	)		-34.5	%
Net (charge-offs) recoveries		137			(101	)		2,386			238		n/m				(2,249	)		-94.3	%
Ending Balance	$	98,734		$	99,457		$	109,191		$	(723	)		-0.7	%	$	(10,457	)		-9.6	%
NET (CHARGE-OFFS) RECOVERIES(1)
Alabama	$	699		$	747		$	102		$	(48	)		-6.4	%	$	597		n/m
Florida		(26	)		(32	)		30			6			18.8	%		(56	)	n/m
Mississippi (2)		(88	)		(683	)		2,207			595			87.1	%		(2,295	)	n/m
Tennessee (3)		(424	)		(130	)		47			(294	)	n/m				(471	)	n/m
Texas		(24	)		(3	)		—			(21	)	n/m				(24	)	n/m
Total net (charge-offs) recoveries	$	137		$	(101	)	$	2,386		$	238		n/m			$	(2,249	)		-94.3	%
(1)  Excludes PPP loans.
(2)  Mississippi includes Central and Southern Mississippi Regions.
(3)  Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.
n/m - percentage changes greater than +/- 100% are considered not meaningful

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	March 31, 2022
	($ in thousands)
	(unaudited)

	Quarter Ended
AVERAGE BALANCES	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Securities AFS-taxable	$	3,245,502		$	3,156,740		$	2,686,765		$	2,339,662		$	2,098,089
Securities AFS-nontaxable		5,127			5,143			5,159			5,174			5,190
Securities HTM-taxable		410,851			364,038			401,685			441,688			489,260
Securities HTM-nontaxable		7,327			7,618			8,641			10,958			24,070
Total securities		3,668,807			3,533,539			3,102,250			2,797,482			2,616,609
PPP loans		29,009			42,749			122,176			648,222			598,139
Loans (includes loans held for sale)		10,550,712			10,487,679			10,389,826			10,315,927			10,316,319
Fed funds sold and reverse repurchases		56			58			69			55			136
Other earning assets		1,811,713			1,839,498			2,038,515			1,750,385			1,667,906
Total earning assets		16,060,297			15,903,523			15,652,836			15,512,071			15,199,109
ACL LHFI		(99,390	)		(104,148	)		(104,857	)		(112,346	)		(119,557	)
Other assets		1,550,848			1,570,501			1,602,611			1,622,388			1,601,250
Total assets	$	17,511,755		$	17,369,876		$	17,150,590		$	17,022,113		$	16,680,802
Interest-bearing demand deposits	$	4,429,056		$	4,353,599		$	4,224,717		$	4,056,910		$	3,743,651
Savings deposits		4,791,104			4,585,624			4,617,683			4,627,180			4,659,037
Time deposits		1,193,435			1,220,083			1,258,829			1,301,896			1,371,830
Total interest-bearing deposits		10,413,595			10,159,306			10,101,229			9,985,986			9,774,518
Fed funds purchased and repurchases		212,006			201,856			147,635			174,620			166,909
Other borrowings		91,090			94,328			109,735			132,199			166,926
Subordinated notes		123,061			123,007			122,951			122,897			122,875
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
Total interest-bearing liabilities		10,901,608			10,640,353			10,543,406			10,477,558			10,293,084
Noninterest-bearing deposits		4,601,108			4,679,951			4,566,924			4,512,268			4,363,559
Other liabilities		295,287			291,449			257,956			251,582			264,808
Total liabilities		15,798,003			15,611,753			15,368,286			15,241,408			14,921,451
Shareholders' equity		1,713,752			1,758,123			1,782,304			1,780,705			1,759,351
Total liabilities and equity	$	17,511,755		$	17,369,876		$	17,150,590		$	17,022,113		$	16,680,802

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	March 31, 2022
	($ in thousands)
	(unaudited)

PERIOD END BALANCES	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Cash and due from banks	$	1,917,564		$	2,266,829		$	2,175,058		$	2,267,224		$	1,774,541
Securities available for sale		3,018,246			3,238,877			3,057,605			2,548,739			2,337,676
Securities held to maturity		607,598			342,537			394,905			433,012			493,738
PPP loans		18,579			33,336			46,486			166,119			679,725
LHFS		222,538			275,706			335,339			332,132			412,999
LHFI		10,397,129			10,247,829			10,174,899			10,152,869			9,983,704
ACL LHFI		(98,734	)		(99,457	)		(104,073	)		(104,032	)		(109,191	)
Net LHFI		10,298,395			10,148,372			10,070,826			10,048,837			9,874,513
Premises and equipment, net		207,301			205,644			201,937			200,970			199,098
Mortgage servicing rights		111,050			87,687			84,101			80,764			83,035
Goodwill		384,237			384,237			384,237			384,237			384,237
Identifiable intangible assets		4,591			5,074			5,621			6,170			6,724
Other real estate		3,187			4,557			6,213			9,439			10,651
Operating lease right-of-use assets		34,048			34,603			34,689			33,201			33,704
Other assets		614,217			568,177			567,627			587,288			587,672
Total assets	$	17,441,551		$	17,595,636		$	17,364,644		$	17,098,132		$	16,878,313
Deposits:
Noninterest-bearing	$	4,739,102		$	4,771,065		$	4,987,885		$	4,446,991		$	4,705,991
Interest-bearing		10,374,190			10,316,095			9,934,954			10,185,093			9,677,449
Total deposits		15,113,292			15,087,160			14,922,839			14,632,084			14,383,440
Fed funds purchased and repurchases		170,499			238,577			146,417			157,176			160,991
Other borrowings		84,644			91,025			94,889			117,223			145,994
Subordinated notes		123,097			123,042			122,987			122,932			122,877
Junior subordinated debt securities		61,856			61,856			61,856			61,856			61,856
ACL on off-balance sheet credit exposures		34,517			35,623			32,684			33,733			29,205
Operating lease liabilities		35,912			36,468			36,531			34,959			35,389
Other liabilities		186,352			180,574			177,494			158,860			178,856
Total liabilities		15,810,169			15,854,325			15,595,697			15,318,823			15,118,608
Common stock		12,806			12,845			13,014			13,079			13,209
Capital surplus		167,094			175,913			201,837			210,420			229,892
Retained earnings		1,600,138			1,585,113			1,573,176			1,566,451			1,533,110
Accumulated other comprehensive income (loss), net of tax		(148,656	)		(32,560	)		(19,080	)		(10,641	)		(16,506	)
Total shareholders' equity		1,631,382			1,741,311			1,768,947			1,779,309			1,759,705
Total liabilities and equity	$	17,441,551		$	17,595,636		$	17,364,644		$	17,098,132		$	16,878,313

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	March 31, 2022
	($ in thousands except per share data)
	(unaudited)

	Quarter Ended
INCOME STATEMENTS	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Interest and fees on LHFS & LHFI-FTE	$	93,252		$	94,137		$	94,101		$	93,698		$	93,394
Interest and fees on PPP loans		168			397			1,533			25,555			9,241
Interest on securities-taxable		12,357			10,796			9,973			8,991			8,938
Interest on securities-tax exempt-FTE		122			123			132			149			290
Other interest income		817			826			949			489			503
Total interest income-FTE		106,716			106,279			106,688			128,882			112,366
Interest on deposits		2,760			3,401			3,691			4,630			5,223
Interest on fed funds purchased and repurchases		70			66			51			59			56
Other interest expense		1,539			1,580			1,733			1,813			1,857
Total interest expense		4,369			5,047			5,475			6,502			7,136
Net interest income-FTE		102,347			101,232			101,213			122,380			105,230
Provision for credit losses, LHFI		(860	)		(4,515	)		(2,492	)		(3,991	)		(10,501	)
Provision for credit losses, off-balance sheet credit exposures		(1,106	)		2,939			(1,049	)		4,528			(9,367	)
Net interest income after provision-FTE		104,313			102,808			104,754			121,843			125,098
Service charges on deposit accounts		9,451			9,366			8,911			7,613			7,356
Bank card and other fees		8,442			8,340			8,549			8,301			9,472
Mortgage banking, net		9,873			11,609			14,004			17,333			20,804
Insurance commissions		14,089			11,716			12,133			12,217			12,445
Wealth management		9,054			8,757			9,071			8,946			8,416
Other, net		3,206			979			1,481			2,001			2,090
Total noninterest income		54,115			50,767			54,149			56,411			60,583
Salaries and employee benefits		69,585			68,258			74,623			70,115			71,162
Services and fees		24,453			22,904			22,306			21,769			22,484
Net occupancy-premises		7,079			6,816			6,854			6,578			6,795
Equipment expense		6,061			6,585			5,941			5,567			6,244
Other expense		14,341			14,906			19,876			14,650			14,863
Total noninterest expense		121,519			119,469			129,600			118,679			121,548
Income before income taxes and tax eq adj		36,909			34,106			29,303			59,575			64,133
Tax equivalent adjustment		3,003			2,906			2,947			2,957			2,894
Income before income taxes		33,906			31,200			26,356			56,618			61,239
Income taxes		4,695			4,978			5,156			8,637			9,277
Net income	$	29,211		$	26,222		$	21,200		$	47,981		$	51,962
Per share data
Earnings per share - basic	$	0.47		$	0.42		$	0.34		$	0.76		$	0.82
Earnings per share - diluted	$	0.47		$	0.42		$	0.34		$	0.76		$	0.82
Dividends per share	$	0.23		$	0.23		$	0.23		$	0.23		$	0.23
Weighted average shares outstanding
Basic		61,514,395			62,037,884			62,521,684			63,214,593			63,395,911
Diluted		61,709,797			62,264,983			62,730,157			63,409,683			63,562,503
Period end shares outstanding		61,463,392			61,648,679			62,461,832			62,773,226			63,394,522

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL  INFORMATION
	March 31, 2022
	($ in thousands)
	(unaudited)

	Quarter Ended
NONPERFORMING ASSETS (1)	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Nonaccrual LHFI
Alabama	$	7,506		$	8,182		$	9,223		$	8,952		$	9,161
Florida		310			313			381			467			607
Mississippi (2)		21,318			21,636			22,898			23,422			35,534
Tennessee (3)		9,266			10,501			10,356			10,751			12,451
Texas		25,999			22,066			23,382			7,856			5,761
Total nonaccrual LHFI		64,399			62,698			66,240			51,448			63,514
Other real estate
Alabama		—			—			613			2,830			3,085
Mississippi (2)		3,187			4,557			5,600			6,550			7,566
Tennessee (3)		—			—			—			59			—
Total other real estate		3,187			4,557			6,213			9,439			10,651
Total nonperforming assets	$	67,586		$	67,255		$	72,453		$	60,887		$	74,165
LOANS PAST DUE OVER 90 DAYS (1)
LHFI	$	1,503		$	2,114		$	625		$	423		$	2,593
LHFS-Guaranteed GNMA serviced loans
(no obligation to repurchase)	$	62,078		$	69,894		$	75,091		$	81,538		$	109,566
	Quarter Ended
ACL LHFI(1)	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Beginning Balance	$	99,457		$	104,073		$	104,032		$	109,191		$	117,306
Provision for credit losses, LHFI		(860	)		(4,515	)		(2,492	)		(3,991	)		(10,501	)
Charge-offs		(2,242	)		(2,616	)		(1,586	)		(4,828	)		(1,245	)
Recoveries		2,379			2,515			4,119			3,660			3,631
Net (charge-offs) recoveries		137			(101	)		2,533			(1,168	)		2,386
Ending Balance	$	98,734		$	99,457		$	104,073		$	104,032		$	109,191
NET (CHARGE-OFFS) RECOVERIES (1)
Alabama	$	699		$	747		$	247		$	203		$	102
Florida		(26	)		(32	)		356			167			30
Mississippi (2)		(88	)		(683	)		1,436			(3,071	)		2,207
Tennessee (3)		(424	)		(130	)		(8	)		1,031			47
Texas		(24	)		(3	)		502			502			—
Total net (charge-offs) recoveries	$	137		$	(101	)	$	2,533		$	(1,168	)	$	2,386
(1)  Excludes PPP loans.
(2)  Mississippi includes Central and Southern Mississippi Regions.
(3)  Tennessee includes Memphis, Tennessee and Northern Mississippi Regions.

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	CONSOLIDATED FINANCIAL INFORMATION
	March 31, 2022
	(unaudited)

	Quarter Ended
FINANCIAL RATIOS AND OTHER DATA	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Return on average equity		6.91	%		5.92	%		4.72	%		10.81	%		11.98	%
Return on average tangible equity		9.05	%		7.72	%		6.16	%		13.96	%		15.56	%
Return on average assets		0.68	%		0.60	%		0.49	%		1.13	%		1.26	%
Interest margin - Yield - FTE		2.69	%		2.65	%		2.70	%		3.33	%		3.00	%
Interest margin - Cost		0.11	%		0.13	%		0.14	%		0.17	%		0.19	%
Net interest margin - FTE		2.58	%		2.53	%		2.57	%		3.16	%		2.81	%
Efficiency ratio (1)		76.44	%		76.52	%		74.10	%		64.31	%		71.84	%
Full-time equivalent employees		2,725			2,692			2,680			2,772			2,793
CREDIT QUALITY RATIOS (2)
Net (recoveries) charge-offs / average loans		-0.01	%		0.00	%		-0.10	%		0.05	%		-0.09	%
Provision for credit losses, LHFI / average loans		-0.03	%		-0.17	%		-0.10	%		-0.16	%		-0.41	%
Nonaccrual LHFI / (LHFI + LHFS)		0.61	%		0.60	%		0.63	%		0.49	%		0.61	%
Nonperforming assets / (LHFI + LHFS)		0.64	%		0.64	%		0.69	%		0.58	%		0.71	%
Nonperforming assets / (LHFI + LHFS + other real estate)		0.64	%		0.64	%		0.69	%		0.58	%		0.71	%
ACL LHFI / LHFI		0.95	%		0.97	%		1.02	%		1.02	%		1.09	%
ACL LHFI-commercial / commercial LHFI		0.95	%		1.00	%		1.05	%		1.04	%		1.13	%
ACL LHFI-consumer / consumer and home mortgage LHFI		0.96	%		0.87	%		0.91	%		0.98	%		0.95	%
ACL LHFI / nonaccrual LHFI		153.32	%		158.63	%		157.11	%		202.21	%		171.92	%
ACL LHFI / nonaccrual LHFI (excl individually evaluated loans)		484.01	%		500.85	%		520.77	%		537.35	%		437.08	%
CAPITAL RATIOS
Total equity / total assets		9.35	%		9.90	%		10.19	%		10.41	%		10.43	%
Tangible equity / tangible assets		7.29	%		7.86	%		8.12	%		8.31	%		8.30	%
Tangible equity / risk-weighted assets		9.79	%		10.71	%		11.19	%		11.33	%		11.23	%
Tier 1 leverage ratio		8.66	%		8.73	%		8.92	%		9.00	%		9.11	%
Common equity tier 1 capital ratio		11.23	%		11.29	%		11.68	%		11.76	%		11.71	%
Tier 1 risk-based capital ratio		11.70	%		11.77	%		12.17	%		12.25	%		12.20	%
Total risk-based capital ratio		13.53	%		13.55	%		14.01	%		14.10	%		14.07	%
STOCK PERFORMANCE
Market value-Close	$	30.39		$	32.46		$	32.22		$	30.80		$	33.66
Book value	$	26.54		$	28.25		$	28.32		$	28.35		$	27.76
Tangible book value	$	20.22		$	21.93		$	22.08		$	22.13		$	21.59
(1)  See Note 6 – Non-GAAP Financial Measures in the Notes to Consolidated Financials for Trustmark’s efficiency ratio calculation.
(2)  Excludes PPP loans.

See Notes to Consolidated Financials

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	March 31, 2022
	($ in thousands)
	(unaudited)

Note 1 - Securities Available for Sale and Held to Maturity

The following table is a summary of the estimated fair value of securities available for sale and the amortized cost of securities held to maturity:

	3/31/2022		12/31/2021		9/30/2021		6/30/2021		3/31/2021
SECURITIES AVAILABLE FOR SALE
U.S. Treasury securities	$	361,822	$	344,640	$	278,615	$	30,025	$	—
U.S. Government agency obligations		12,623		13,727		14,979		16,023		17,349
Obligations of states and political subdivisions		5,359		5,714		5,734		5,807		5,798
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		35,117		39,573		43,860		48,445		52,406
Issued by FNMA and FHLMC		2,038,331		2,218,429		2,187,412		1,983,783		1,749,144
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		164,506		196,690		236,885		283,988		345,869
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		400,488		420,104		290,120		180,668		167,110
Total securities available for sale	$	3,018,246	$	3,238,877	$	3,057,605	$	2,548,739	$	2,337,676
SECURITIES HELD TO MATURITY
Obligations of states and political subdivisions	$	7,324	$	7,328	$	10,683	$	12,994	$	26,554
Mortgage-backed securities
Residential mortgage pass-through securities
Guaranteed by GNMA		4,831		5,005		5,912		6,249		7,268
Issued by FNMA and FHLMC		192,373		43,444		48,554		53,406		61,855
Other residential mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		224,012		241,934		264,638		291,477		324,360
Commercial mortgage-backed securities
Issued or guaranteed by FNMA, FHLMC, or GNMA		179,058		44,826		65,118		68,886		73,701
Total securities held to maturity	$	607,598	$	342,537	$	394,905	$	433,012	$	493,738

At March 31, 2022, the net unamortized, unrealized loss included in accumulated other comprehensive income (loss) in the accompanying balance sheet for securities held to maturity previously transferred from securities available for sale totaled approximately $5.8 million ($4.3 million, net of tax).

Management continues to focus on asset quality as one of the strategic goals of the securities portfolio, which is evidenced by the investment of 99.7% of the portfolio in GSE-backed obligations and other Aaa rated securities as determined by Moody’s. None of the securities owned by Trustmark are collateralized by assets which are considered sub-prime. Furthermore, outside of stock ownership in the Federal Home Loan Bank of Dallas, Federal Home Loan Bank of Atlanta and Federal Reserve Bank, Trustmark does not hold any other equity investment in a GSE.

Note 2 – Loan Composition

LHFI consisted of the following during the periods presented:

LHFI BY TYPE	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Loans secured by real estate:
Construction, land development and other land loans	$	1,273,959		$	1,308,781		$	1,286,613		$	1,360,302		$	1,342,088
Secured by 1-4 family residential properties		2,106,998			1,977,993			1,891,292			1,810,396			1,742,782
Secured by nonfarm, nonresidential properties		2,975,039			2,977,084			2,924,953			2,819,662			2,799,195
Other real estate secured		715,939			726,043			986,163			1,078,622			1,135,005
Commercial and industrial loans		1,495,060			1,414,279			1,327,211			1,326,605			1,323,277
Consumer loans		154,215			159,472			157,963			153,519			153,267
State and other political subdivision loans		1,215,023			1,146,251			1,125,186			1,136,764			1,036,694
Other loans		460,896			537,926			475,518			466,999			451,396
LHFI		10,397,129			10,247,829			10,174,899			10,152,869			9,983,704
ACL LHFI		(98,734	)		(99,457	)		(104,073	)		(104,032	)		(109,191	)
Net LHFI	$	10,298,395		$	10,148,372		$	10,070,826		$	10,048,837		$	9,874,513

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	March 31, 2022
	($ in thousands)
	(unaudited)

Note 2 – Loan Composition (continued)

The following table presents the LHFI composition by region and reflects each region’s diversified mix of loans:

	March 31, 2022
LHFI - COMPOSITION BY REGION	Total		Alabama		Florida		Mississippi (Central and Southern Regions)		Tennessee (Memphis, TN and NorthernMS Regions)		Texas
Loans secured by real estate:
Construction, land development and other land loans	$	1,273,959	$	529,999	$	48,309	$	352,191	$	53,661	$	289,799
Secured by 1-4 family residential properties		2,106,998		111,960		41,219		1,870,529		66,423		16,867
Secured by nonfarm, nonresidential properties		2,975,039		859,687		255,757		1,125,568		180,042		553,985
Other real estate secured		715,939		171,769		6,691		267,558		20,747		249,174
Commercial and industrial loans		1,495,060		323,940		24,462		637,245		280,006		229,407
Consumer loans		154,215		22,749		8,203		97,681		18,128		7,454
State and other political subdivision loans		1,215,023		89,009		73,548		758,807		33,627		260,032
Other loans		460,896		75,916		11,219		290,692		35,503		47,566
Loans	$	10,397,129	$	2,185,029	$	469,408	$	5,400,271	$	688,137	$	1,654,284
CONSTRUCTION, LAND DEVELOPMENT AND OTHER LAND LOANS BY REGION
Lots	$	66,342	$	30,229	$	10,368	$	16,696	$	3,179	$	5,870
Development		120,992		52,238		555		30,884		12,141		25,174
Unimproved land		102,184		24,360		11,889		33,738		11,020		21,177
1-4 family construction		338,813		157,819		20,402		93,811		26,304		40,477
Other construction		645,628		265,353		5,095		177,062		1,017		197,101
Construction, land development and other land loans	$	1,273,959	$	529,999	$	48,309	$	352,191	$	53,661	$	289,799
LOANS SECURED BY NONFARM, NONRESIDENTIAL PROPERTIES BY REGION
Non-owner occupied:
Retail	$	354,974	$	132,872	$	35,777	$	100,409	$	22,650	$	63,266
Office		200,790		68,636		22,721		65,783		11,708		31,942
Hotel/motel		340,296		185,774		77,052		31,274		31,782		14,414
Mini-storage		157,182		22,984		2,100		103,191		432		28,475
Industrial		281,324		91,265		19,647		100,512		133		69,767
Health care		60,365		20,933		1,073		35,057		357		2,945
Convenience stores		20,328		8,270		668		5,971		1,144		4,275
Nursing homes/senior living		247,036		97,362		—		86,447		6,101		57,126
Other		80,353		18,638		7,089		27,329		11,458		15,839
Total non-owner occupied loans		1,742,648		646,734		166,127		555,973		85,765		288,049
Owner-occupied:
Office		174,447		38,250		37,682		58,774		12,933		26,808
Churches		81,601		18,512		5,630		45,644		8,296		3,519
Industrial warehouses		179,800		17,012		2,683		51,383		18,796		89,926
Health care		117,428		11,815		6,709		81,711		2,257		14,936
Convenience stores		141,493		13,915		18,399		67,249		444		41,486
Retail		71,684		10,740		10,473		19,559		18,668		12,244
Restaurants		55,403		4,616		4,867		29,491		12,460		3,969
Auto dealerships		51,150		5,798		249		25,856		19,247		—
Nursing homes/senior living		236,661		85,536		—		124,925		—		26,200
Other		122,724		6,759		2,938		65,003		1,176		46,848
Total owner-occupied loans		1,232,391		212,953		89,630		569,595		94,277		265,936
Loans secured by nonfarm, nonresidential properties	$	2,975,039	$	859,687	$	255,757	$	1,125,568	$	180,042	$	553,985

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	March 31, 2022
	($ in thousands)
	(unaudited)

Note 3 – Yields on Earning Assets and Interest-Bearing Liabilities

The following table illustrates the yields on earning assets by category as well as the rates paid on interest-bearing liabilities on a tax equivalent basis:

	Quarter Ended
	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Securities – taxable		1.37	%		1.22	%		1.28	%		1.30	%		1.40	%
Securities – nontaxable		3.97	%		3.82	%		3.79	%		3.70	%		4.02	%
Securities – total		1.38	%		1.23	%		1.29	%		1.31	%		1.43	%
PPP loans		2.35	%		3.68	%		4.98	%		15.81	%		6.27	%
Loans - LHFI & LHFS		3.58	%		3.56	%		3.59	%		3.64	%		3.67	%
Loans - total		3.58	%		3.56	%		3.61	%		4.36	%		3.81	%
Other earning assets		0.18	%		0.18	%		0.18	%		0.11	%		0.12	%
Total earning assets		2.69	%		2.65	%		2.70	%		3.33	%		3.00	%
Interest-bearing deposits		0.11	%		0.13	%		0.14	%		0.19	%		0.22	%
Fed funds purchased & repurchases		0.13	%		0.13	%		0.14	%		0.14	%		0.14	%
Other borrowings		2.26	%		2.25	%		2.33	%		2.29	%		2.14	%
Total interest-bearing liabilities		0.16	%		0.19	%		0.21	%		0.25	%		0.28	%
Net interest margin		2.58	%		2.53	%		2.57	%		3.16	%		2.81	%
Net interest margin excluding PPP loans and the FRB balance		2.88	%		2.82	%		2.90	%		2.94	%		2.99	%

Reflected in the table above are yields on earning assets and liabilities, along with the net interest margin which equals reported net interest income-FTE, annualized, as a percent of average earning assets. In addition, the table includes net interest margin excluding PPP loans and the balance held at the Federal Reserve Bank of Atlanta (FRB), which equals reported net interest income-FTE excluding interest income on PPP loans and the FRB balance, annualized, as a percent of average earning assets excluding average PPP loans and the FRB balance.

At March 31, 2022 and December 31, 2021, the average FRB balance totaled $1.758 billion and $1.787 billion, respectively, and is included in other earning assets in the accompanying average consolidated balance sheets.

The net interest margin excluding PPP loans and the FRB balance totaled 2.88% for the first quarter of 2022, an increase of 6 basis points when compared to the fourth quarter of 2021.  The expansion of the net interest margin excluding PPP loans and the FRB balance was due to increases in the yields on the loans held for investment and held for sale portfolio and the securities portfolio which resulted from the higher interest-rate environment as well as lower costs of interest-bearing liabilities.  

Note 4 – Mortgage Banking

Trustmark utilizes a portfolio of exchange-traded derivative instruments, such as Treasury note futures contracts and option contracts, to achieve a fair value return that offsets the changes in fair value of mortgage servicing rights (MSR) attributable to interest rates.  These transactions are considered freestanding derivatives that do not otherwise qualify for hedge accounting under generally accepted accounting principles (GAAP).  Changes in the fair value of these exchange-traded derivative instruments, including administrative costs, are recorded in noninterest income in mortgage banking, net and are offset by the changes in the fair value of the MSR.  The MSR fair value represents the present value of future cash flows, which among other things includes decay and the effect of changes in interest rates.  Ineffectiveness of hedging the MSR fair value is measured by comparing the change in value of hedge instruments to the change in the fair value of the MSR asset attributable to changes in interest rates and other market driven changes in valuation inputs and assumptions.  The impact of this strategy resulted in a net positive ineffectiveness of $1.0 million during the first quarter of 2022.  

The following table illustrates the components of mortgage banking revenues included in noninterest income in the accompanying income statements:

	Quarter Ended
	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Mortgage servicing income, net	$	6,429		$	6,571		$	6,406		$	6,318		$	6,181
Change in fair value-MSR from runoff		(3,785	)		(4,745	)		(5,283	)		(5,029	)		(5,103	)
Gain on sales of loans, net		6,223			9,005			12,737			14,778			19,456
Mortgage banking income before hedge ineffectiveness		8,867			10,831			13,860			16,067			20,534
Change in fair value-MSR from market changes		22,020			2,221			1,806			(4,465	)		13,696
Change in fair value of derivatives		(21,014	)		(1,443	)		(1,662	)		5,731			(13,426	)
Net positive (negative) hedge ineffectiveness		1,006			778			144			1,266			270
Mortgage banking, net	$	9,873		$	11,609		$	14,004		$	17,333		$	20,804

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	March 31, 2022
	($ in thousands)
	(unaudited)

Note 5 – Other Noninterest Income and Expense

Other noninterest income consisted of the following for the periods presented:

	Quarter Ended
	3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Partnership amortization for tax credit purposes	$	(1,336	)	$	(2,455	)	$	(2,045	)	$	(1,989	)	$	(1,522	)
Increase in life insurance cash surrender value		1,627			1,675			1,663			1,653			1,639
Other miscellaneous income		2,915			1,759			1,863			2,337			1,973
Total other, net	$	3,206		$	979		$	1,481		$	2,001		$	2,090

Trustmark invests in partnerships that provide income tax credits on a Federal and/or State basis (i.e., new market tax credits, low-income housing tax credits and historical tax credits). The income tax credits related to these partnerships are utilized as specifically allowed by income tax law and are recorded as a reduction in income tax expense.

Other noninterest expense consisted of the following for the periods presented:

	Quarter Ended
	3/31/2022		12/31/2021		9/30/2021		6/30/2021		3/31/2021
Loan expense	$	4,389	$	3,221	$	4,022	$	3,738	$	4,167
Amortization of intangibles		482		548		549		553		666
FDIC assessment expense		1,500		1,475		1,275		1,225		1,540
Regulatory settlement charge		—		—		5,000		—		—
Other real estate expense, net		35		336		1,357		1,511		324
Other miscellaneous expense		7,935		9,326		7,673		7,623		8,166
Total other expense	$	14,341	$	14,906	$	19,876	$	14,650	$	14,863

Note 6 – Non-GAAP Financial Measures

In addition to capital ratios defined by GAAP and banking regulators, Trustmark utilizes various tangible common equity measures when evaluating capital utilization and adequacy. Tangible common equity, as defined by Trustmark, represents common equity less goodwill and identifiable intangible assets. Trustmark’s Common Equity Tier 1 capital includes common stock, capital surplus and retained earnings, and is reduced by goodwill and other intangible assets, net of associated net deferred tax liabilities as well as disallowed deferred tax assets and threshold deductions as applicable.

Trustmark believes these measures are important because they reflect the level of capital available to withstand unexpected market conditions. Additionally, presentation of these measures allows readers to compare certain aspects of Trustmark’s capitalization to other organizations. These ratios differ from capital measures defined by banking regulators principally in that the numerator excludes shareholders’ equity associated with preferred securities, the nature and extent of which varies across organizations. In Management’s experience, many stock analysts use tangible common equity measures in conjunction with more traditional bank capital ratios to compare capital adequacy of banking organizations with significant amounts of goodwill or other intangible assets, typically stemming from the use of the purchase accounting method in accounting for mergers and acquisitions.

These calculations are intended to complement the capital ratios defined by GAAP and banking regulators. Because GAAP does not include these capital ratio measures, Trustmark believes there are no comparable GAAP financial measures to these tangible common equity ratios. Despite the importance of these measures to Trustmark, there are no standardized definitions for them and, as a result, Trustmark’s calculations may not be comparable with other organizations. Also, there may be limits in the usefulness of these measures to investors. As a result, Trustmark encourages readers to consider its audited consolidated financial statements and the notes related thereto in their entirety and not to rely on any single financial measure.

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	March 31, 2022
	($ in thousands)
	(unaudited)

Note 6 – Non-GAAP Financial Measures (continued)

		Quarter Ended
		3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
TANGIBLE EQUITY
AVERAGE BALANCES
Total shareholders' equity		$	1,713,752		$	1,758,123		$	1,782,304		$	1,780,705		$	1,759,351
Less:  Goodwill			(384,237	)		(384,237	)		(384,237	)		(384,237	)		(385,155	)
Identifiable intangible assets			(4,879	)		(5,382	)		(5,899	)		(6,442	)		(7,118	)
Total average tangible equity		$	1,324,636		$	1,368,504		$	1,392,168		$	1,390,026		$	1,367,078
PERIOD END BALANCES
Total shareholders' equity		$	1,631,382		$	1,741,311		$	1,768,947		$	1,779,309		$	1,759,705
Less:  Goodwill			(384,237	)		(384,237	)		(384,237	)		(384,237	)		(384,237	)
Identifiable intangible assets			(4,591	)		(5,074	)		(5,621	)		(6,170	)		(6,724	)
Total tangible equity	(a)	$	1,242,554		$	1,352,000		$	1,379,089		$	1,388,902		$	1,368,744
TANGIBLE ASSETS
Total assets		$	17,441,551		$	17,595,636		$	17,364,644		$	17,098,132		$	16,878,313
Less:  Goodwill			(384,237	)		(384,237	)		(384,237	)		(384,237	)		(384,237	)
Identifiable intangible assets			(4,591	)		(5,074	)		(5,621	)		(6,170	)		(6,724	)
Total tangible assets	(b)	$	17,052,723		$	17,206,325		$	16,974,786		$	16,707,725		$	16,487,352
Risk-weighted assets	(c)	$	12,691,545		$	12,623,630		$	12,324,254		$	12,256,492		$	12,188,988
NET INCOME ADJUSTED FOR INTANGIBLE AMORTIZATION
Net income		$	29,211		$	26,222		$	21,200		$	47,981		$	51,962
Plus: Intangible amortization net of tax			362			411			412			415			500
Net income adjusted for intangible amortization		$	29,573		$	26,633		$	21,612		$	48,396		$	52,462
Period end common shares outstanding	(d)		61,463,392			61,648,679			62,461,832			62,773,226			63,394,522
TANGIBLE COMMON EQUITY MEASUREMENTS
Return on average tangible equity (1)			9.05	%		7.72	%		6.16	%		13.96	%		15.56	%
Tangible equity/tangible assets	(a)/(b)		7.29	%		7.86	%		8.12	%		8.31	%		8.30	%
Tangible equity/risk-weighted assets	(a)/(c)		9.79	%		10.71	%		11.19	%		11.33	%		11.23	%
Tangible book value	(a)/(d)*1,000	$	20.22		$	21.93		$	22.08		$	22.13		$	21.59
COMMON EQUITY TIER 1 CAPITAL (CET1)
Total shareholders' equity		$	1,631,382		$	1,741,311		$	1,768,947		$	1,779,309		$	1,759,705
CECL transition adjustment			19,500			26,000			26,419			26,671			26,829
AOCI-related adjustments			148,656			32,560			19,080			10,641			16,506
CET1 adjustments and deductions:
Goodwill net of associated deferred tax liabilities (DTLs)			(370,240	)		(370,252	)		(370,264	)		(370,276	)		(370,288	)
Other adjustments and deductions for CET1 (2)			(4,015	)		(4,392	)		(4,817	)		(5,243	)		(5,675	)
CET1 capital	(e)		1,425,283			1,425,227			1,439,365			1,441,102			1,427,077
Additional tier 1 capital instruments plus related surplus			60,000			60,000			60,000			60,000			60,000
Tier 1 capital		$	1,485,283		$	1,485,227		$	1,499,365		$	1,501,102		$	1,487,077
Common equity tier 1 capital ratio	(e)/(c)		11.23	%		11.29	%		11.68	%		11.76	%		11.71	%

(1) Calculation = ((net income adjusted for intangible amortization/number of days in period)*number of days in year)/total average tangible equity.

(2) Includes other intangible assets, net of DTLs, disallowed deferred tax assets (DTAs), threshold deductions and transition adjustments, as applicable.  

	TRUSTMARK CORPORATION AND SUBSIDIARIES
	NOTES TO CONSOLIDATED FINANCIALS
	March 31, 2022
	($ in thousands)
	(unaudited)

Note 6 – Non-GAAP Financial Measures (continued)

Trustmark discloses certain non-GAAP financial measures because Management uses these measures for business planning purposes, including to manage Trustmark’s business against internal projected results of operations and to measure Trustmark’s performance. Trustmark views these as measures of our core operating business, which exclude the impact of the items detailed below, as these items are generally not operational in nature. These non-GAAP financial measures also provide another basis for comparing period-to-period results as presented in the accompanying selected financial data table and the audited consolidated financial statements by excluding potential differences caused by non-operational and unusual or non-recurring items. Readers are cautioned that these adjustments are not permitted under GAAP. Trustmark encourages readers to consider its consolidated financial statements and the notes related thereto in their entirety, and not to rely on any single financial measure.

The following table presents pre-provision net revenue (PPNR) during the periods presented:

			Quarter Ended
			3/31/2022		12/31/2021		9/30/2021			6/30/2021		3/31/2021
Net interest income (GAAP)			$	99,344	$	98,326	$	98,266		$	119,423	$	102,336
Noninterest income (GAAP)				54,115		50,767		54,149			56,411		60,583
Pre-provision revenue		(a)	$	153,459	$	149,093	$	152,415		$	175,834	$	162,919
Noninterest expense (GAAP)			$	121,519	$	119,469	$	129,600		$	118,679	$	121,548
Less:	Voluntary early retirement program			—		—		(5,700	)		—		—
	Regulatory settlement charge			—		—		(5,000	)		—		—
Adjusted noninterest expense - PPNR (Non-GAAP)		(b)	$	121,519	$	119,469	$	118,900		$	118,679	$	121,548
PPNR (Non-GAAP)		(a)-(b)	$	31,940	$	29,624	$	33,515		$	57,155	$	41,371

The following table presents Trustmark’s calculation of its efficiency ratio for the periods presented:

			Quarter Ended
			3/31/2022			12/31/2021			9/30/2021			6/30/2021			3/31/2021
Total noninterest expense (GAAP)			$	121,519		$	119,469		$	129,600		$	118,679		$	121,548
Less:	Other real estate expense, net			(35	)		(336	)		(1,357	)		(1,511	)		(324	)
	Amortization of intangibles			(482	)		(548	)		(549	)		(553	)		(666	)
	Charitable contributions resulting in state tax credits			(375	)		(391	)		(350	)		(355	)		(350	)
	Voluntary early retirement program			—			—			(5,700	)		—			—
	Regulatory settlement charge			—			—			(5,000	)		—			—
Adjusted noninterest expense (Non-GAAP)		(c)	$	120,627		$	118,194		$	116,644		$	116,260		$	120,208
Net interest income (GAAP)			$	99,344		$	98,326		$	98,266		$	119,423		$	102,336
Add:	Tax equivalent adjustment			3,003			2,906			2,947			2,957			2,894
Net interest income-FTE (Non-GAAP)		(a)	$	102,347		$	101,232		$	101,213		$	122,380		$	105,230
Noninterest income (GAAP)			$	54,115		$	50,767		$	54,149		$	56,411		$	60,583
Add:	Partnership amortization for tax credit purposes			1,336			2,455			2,045			1,989			1,522
Adjusted noninterest income (Non-GAAP)		(b)	$	55,451		$	53,222		$	56,194		$	58,400		$	62,105
Adjusted revenue (Non-GAAP)		(a)+(b)	$	157,798		$	154,454		$	157,407		$	180,780		$	167,335
Efficiency ratio (Non-GAAP)		(c)/((a)+(b))		76.44	%		76.52	%		74.10	%		64.31	%		71.84	%

EX-99.2

First Quarter 2022 Financial Results April 26, 2022 Exhibit 99.2

Forward–Looking Statements 2 Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “project,” “potential,” “seek,” “continue,” “could,” “would,” “future” or the negative of those terms or other words of similar meaning. You should read statements that contain these words carefully because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements include, but are not limited to, statements relating to anticipated future operating and financial performance measures, including net interest margin, credit quality, business initiatives, growth opportunities and growth rates, among other things, and encompass any estimate, prediction, expectation, projection, opinion, anticipation, outlook or statement of belief included therein as well as the management assumptions underlying these forward looking statements. You should be aware that the occurrence of the events described under the caption Item 1A. Risk Factors in this report could have an adverse effect on our business, results of operations and financial condition. Should one or more of these risks materialize, or should any such underlying assumptions prove to be significantly different, actual results may vary significantly from those anticipated, estimated, projected or expected. Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by or may, in the future, be amplified by, the novel coronavirus (COVID-19) pandemic, and also by the effectiveness of varying governmental responses in ameliorating the impact of the pandemic on our customers and the economies where they operate. Risks that could cause actual results to differ materially from current expectations of Management include, but are not limited to, changes in the level of nonperforming assets and charge-offs, an increase in unemployment levels and slowdowns in economic growth, our ability to manage the impact of the COVID-19 pandemic on our markets, as well as the effectiveness of actions of federal, state and local governments and agencies (including the Board of Governors of the Federal Reserve System (FRB)) to mitigate its spread and economic impact, local, state and national economic and market conditions, conditions in the housing and real estate markets in the regions in which Trustmark operates and the extent and duration of the current volatility in the credit and financial markets, levels of and volatility in crude oil prices, changes in our ability to measure the fair value of assets in our portfolio, material changes in the level and/or volatility of market interest rates, the performance and demand for the products and services we offer, including the level and timing of withdrawals from our deposit accounts, the costs and effects of litigation and of unexpected or adverse outcomes in such litigation, our ability to attract noninterest-bearing deposits and other low-cost funds, competition in loan and deposit pricing, as well as the entry of new competitors into our markets through de novo expansion and acquisitions, economic conditions, including the potential impact of issues related to the European financial system and monetary and other governmental actions designed to address credit, securities, and/or commodity markets, the enactment of legislation and changes in existing regulations or enforcement practices or the adoption of new regulations, changes in accounting standards and practices, including changes in the interpretation of existing standards, that affect our consolidated financial statements, changes in consumer spending, borrowings and savings habits, technological changes, changes in the financial performance or condition of our borrowers, changes in our ability to control expenses, greater than expected costs or difficulties related to the integration of acquisitions or new products and lines of business, cyber attacks and other breaches which could affect our information system security, natural disasters, environmental disasters, pandemics or other health crises, acts of war or terrorism, and other risks described in our filings with the Securities and Exchange Commission (SEC). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Except as required by law, we undertake no obligation to update or revise any of this information, whether as the result of new information, future events or developments or otherwise

Expense Management Financial Highlights Loan and deposit growth continues, credit quality remains strong, insurance and wealth management revenue expands Source: Company reports 3 Loans Held for Investment (HFI) increased $149.3 million, or 1.5%, linked-quarter and $413.4 million, or 4.1%, year-over-year Deposits increased $26.1 million, or 0.2%, linked-quarter and $729.9 million, or 5.1%, year-over-year Solid performance in fee-based businesses Earnings Drivers Revenue totaled $153.5 million, up $4.4 million, or 2.9%, from the prior quarter Net interest income (FTE) totaled $102.3 million, an increase $1.1 million, or 1.1%, linked-quarter Noninterest income totaled $54.1 million, representing 35.3% of total revenue Insurance revenue experienced a 20.3% increase linked-quarter and 13.2% increase year-over-year Profitable Revenue Generation Noninterest expense totaled $121.5 million in the first quarter, up $2.1 million, or 1.7%, from the prior quarter Salaries and employee benefits expense increased $1.3 million principally due to payroll taxes Equipment expense and other expense collectively declined $1.1 million linked-quarter Credit quality remained solid; nonperforming assets declined 8.9% year-over-year Recoveries exceeded charge-offs by $137 thousand in the first quarter Provision for credit losses totaled a negative $2.0 million for the quarter Credit Quality Maintained strong capital levels with CET1 ratio of 11.23% and total risk-based capital ratio of 13.53% Repurchased $9.1 million, or approximately 279 thousand shares of common stock in the first quarter; at March 31, 2022, had $90.9 million remaining authority under the repurchase program, which expires on December 31, 2022 Board of Directors declared quarterly cash dividend of $0.23 per share Capital Management

Loans Held for Investment (LHFI) Portfolio Focus on profitable, credit-disciplined loan growth continued Source: Company reports (1) Percentages may not sum to 100% due to rounding. Dollar Change: $22 $149 $73 $169 4 Portfolio exhibits diversity by product type, geography, and industry Solid growth in the quarter while maintaining strong asset quality Virtually no exposure to regulatory defined higher risk commercial and industrial outstandings and REITs 1-4 Residential portfolio is primarily comprised of 15 year or less mortgages and Hybrid ARMs    

Real Estate Secured Loan Portfolio Detail 5 Source: Company reports (1) Multi-Family is included in Other Real Estate Secured Loans in Financials Focus on vertical construction with limited exposure to unimproved land and development Well-diversified product and geographical mix Balanced between non-owner and owner-occupied portfolios Virtually no REIT outstanding ($4.4 million)

Commercial Loan Portfolio Detail 6 Source: Company reports Well-diversified portfolio with no single category exceeding 12% Small energy book and has never been an area of focused growth Virtually no regulatory defined higher risk commercial and industrial outstanding ($16.0 million) Portfolio includes commercial, financial intermediaries, agriculture production and non-profits

Allowance for Credit Losses Source: Company reports Does not include allowance for off balance sheet credit exposures Totals may not foot due to rounding 7 ($ in millions) Net impact of quantitative changes including improvement of the macroeconomic forecast, loan growth, and individually analyzed reserves Net impact of qualitative changes including the COVID-19 pandemic reserve and potential impact of the rising rate environment Net impact of all other changes including prepayment studies etc. ACL 12/31/21 ACL 3/31/22

Credit Risk Management Solid asset quality metrics Allowance for credit losses represented 0.95% of loans held for investment and 484.01% of nonaccrual loans, excluding individually evaluated loans Recoveries exceeded charge-offs by $137 thousand in the first quarter Nonperforming assets remained relatively unchanged from the prior quarter and declined $6.6 million, or 8.9%, year-over-year Source: Company reports Note: Unless noted otherwise, credit metrics exclude PPP loans (1) Totals may not foot due to rounding (2) NPLs excludes individually evaluated loans 8

Attractive, Low-Cost Deposit Base Deposits totaled $15.1 billion at March 31, 2022, up $26.1 million, or 0.2%, linked-quarter, and up $729.9 million, or 5.1%, year-over-year Cost of interest-bearing deposits in the first quarter totaled 0.11%, down 2 basis points from the prior quarter Source: Company reports (1) Numbers and/or percentages may not foot due to rounding. (2) Above does not include the daily sweep between low transaction interest checking to savings for regulatory purposes. 9 $14,668

Income Statement Highlights – Net Interest Income Net interest income (FTE) totaled $102.3 million, resulting in a net interest margin of 2.58% in the first quarter The net interest margin, excluding PPP loans and Federal Reserve Bank balance, totaled 2.88% in the first quarter, a 6 basis point increase from the prior quarter Source: Company reports (1) Totals may not foot due to rounding (2) Loan Yield includes LHFI & LHFS 10 Asset Rate/Volume Liability Rate/Volume # of Days in Quarter PPP Net Interest Margin

Earning Asset Composition & Interest Rate Sensitivity As of 03/31/22 11 Substantial NII asset sensitivity is driven by, Loan portfolio mix with 47% variable rate (Excludes Hybrid ARMS >1 year to next reset) Securities portfolio duration of 4.1 years Cash & due balance of $1.9 billion Agency MBS is backed primarily by 15-year collateral Book Balance: $3.8B Yield: 1.38% Book Balance: $10.6B Yield2: 3.58% (1) Loans include LHFI & LHFS (2) Loan Yield includes LHFI & LHFS

Income Statement Highlights – Noninterest Income Source: Company reports (1) Totals may not foot due to rounding Noninterest income totaled $54.1 million in the first quarter, an increase of $3.3 million linked-quarter and a $6.5 million decrease year-over-year. The linked-quarter increases in insurance, wealth management and other, net revenue, which includes a gain on the sale of a former branch facility, were offset in part by a decline in mortgage banking revenue. Insurance revenue totaled $14.1 million, a $2.4 million increase from the prior quarter and a $1.6 million increase from the previous year due primarily to increased property and casualty commissions. 12 (1)

Income Statement Highlights – Mortgage Banking Source: Company reports (1) Totals may not foot due to rounding (2) Production includes Loans Available for Sale (AFS) and Portfolio (3) Gain on Sale Margin excludes FAS 133 (Pipeline valuation adjustment) Mortgage banking revenue totaled $9.9 million in the first quarter of 2022, a $1.7 million decrease linked-quarter and $10.9 million decrease year-over year. Mortgage loan production in the first quarter totaled $544.3 million, a decrease of 7.9% from the prior quarter and 29.0% from the prior year. Retail production represented 80% of volume, or $434.2 million, in the first quarter. 13 Gain on sale margin (3) Purchase 52% 71% 69% 71% 73% Refinance 48% 29% 31% 29% 27%

Adjusted Noninterest Expense(2) – totaled $120.6 million in the first quarter, a 2.1% increase from the prior quarter Salaries and employee benefits increased $1.3 million linked-quarter principally due to payroll taxes. Services & fees increased $1.5 million from the prior quarter due to continued investments in technology and higher professional fees while net occupancy-premises expense grew $263 thousand Equipment expense and other expense collectively declined $1.1 million linked-quarter Income Statement Highlights – Noninterest Expense Source: Company reports (1) Totals may not foot due to rounding (2) For Non-GAAP measures, please refer to the Earnings Release dated April 26, 2022 and the Consolidated Financial Information, Note 6 – Non-GAAP Financial Measures 14

Capital Management Solid capital position reflects consistent profitability of diversified financial services businesses Capital position remained strong with a CET1 ratio of 11.23% and a total risk-based capital ratio of 13.53% at March 31, 2022 Repurchased $9.1 million, or approximately 279 thousand shares of common stock in the first quarter. At March 31, 2022, Trustmark had $90.9 million in remaining authority under its existing stock repurchase program, which expires December 31, 2022. Trustmark’s Board of Directors declared a quarterly cash dividend of $0.23 per share payable June 15, 2022, to shareholders of record on June 1, 2022 Source: Company reports (1) Trustmark has elected the five-year phase-in transition period related to adopting the CECL methodology for its regulatory capital. 15

Outlook Commentary(1) Source: Company reports (1) See Forward Looking Statement Disclosure on page 2 of this presentation for a discussion of factors that could affect management’s expectations and results in future periods. 16

Trustmark Corporation Diversified financial services company headquartered in Jackson, MS, offering banking, wealth management, and risk management solutions in 179 locations throughout the Southeast U.S. Our vision is to be a premier financial services provider in our marketplace. Our mission is to achieve outstanding customer satisfaction by providing banking, wealth management, and risk management solutions through superior sales and service, utilizing excellent people, teamwork, and diversity, while meeting our corporate financial goals. 17 Who We Are Strategic Priorities to Enhance Shareholder Value Our Footprint

XML

Document and Entity Information	Apr. 26, 2022
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Apr. 26, 2022
Entity Registrant Name	TRUSTMARK CORP
Entity Central Index Key	0000036146
Entity Emerging Growth Company	false
Entity File Number	000-03683
Entity Incorporation, State or Country Code	MS
Entity Tax Identification Number	64-0471500
Entity Address, Address Line One	248 East Capitol Street
Entity Address, City or Town	Jackson
Entity Address, State or Province	MS
Entity Address, Postal Zip Code	39201
City Area Code	601
Local Phone Number	208-5111
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of each class	Common Stock, no par value
Trading Symbol	TRMK
Name of each exchange on which registered	NASDAQ